A Restricted Purposes Company is a corporate entity that is designed to act as a special purpose vehicle.
A Restricted Purposes Company is a company limited by shares whose memorandum states – (a) that the company is a restricted purpose company; and (b) the purpose or purposes for which the company is incorporated.
Restricted Purposes Company are predominantly used for specific purpose. Persons carrying out business with a Restricted Purposes Company have the additional layer of comfort that the company may not engage in any activity that is outside its stated purpose. The restriction on the company activities as stated in its memorandum is binding on the company, its shareholders and its directors.
A company that is not registered as a Restricted Purposes Company on its incorporation, continuation or re-registration shall not subsequently be registered as a Restricted Purposes Company.